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https://www.reuters.com/article/us-mcdonalds-strategy-analysis-idUSKBN19B0CG

Tracy Moore grew impatient as she waited for a Quarter Pounder recently in the parking lot of a McDonald's restaurant in central Dallas.

The burger, made with fresh beef and billed as hotter and juicer than the original made from a frozen patty, is part of the company's effort to serve tastier food.

But after about four minutes, it was Moore who was steamed. Like other customers who'd ordered the new Quarter Pounder at the restaurant's drive-through, she was asked to pull into a parking space and wait.

"If it's going to be that long every time, I won't order it. I'd go elsewhere," said Moore, who hits the drive-through every morning for a Coke and dines frequently at the chain.

The tradeoff between time and taste looms large for McDonald's Corp as it works to win back business lost to rivals. The introduction of cooked-to-order, quarter-pound burgers made with fresh beef is part of the chain's attempt to improve food quality. Announced in March, the new sandwiches are already in selected test markets and are expected to be served in all U.S. stores by mid-2018.

But the success of the initiative may well hinge on satisfying important customers like Moore: speed-minded drive-through patrons who account for 70 percent of the firm's U.S. revenue.

An on-demand Quarter Pounder takes about a minute longer to land in a customer's hands than does the original sandwich, according to restaurant managers and analysts, even though fresh beef fries up faster than frozen patties. That's because grilling begins only after a patron orders. Traditional Quarter Pounders were often cooked up in batches ahead of time.

Every second counts in the fast-food business. McDonald's drive-through speeds already lag those of some major competitors, according to one widely watched survey. McDonald's does not share such data, but company representatives told Reuters earlier this year that service times have slowed.

Adams says restaurant crews already are juggling trickier menu items thanks to the recent national launch of McDonald's new "Signature Crafted" sandwich line, which allows customers to pick their own meat, buns and toppings. "Signature Crafted" quarter-pound burgers also will use fresh beef as it becomes available nationwide.

McDonald's cooks could be further strained by the chain's embrace of self-service kiosks and mobile ordering. The technology shaves ordering times, but can create new bottlenecks by swamping kitchens at peak hours, as companies such as Starbucks Corp have learned.

FRESH VS. FAST

The revamped Quarter Pounder is the latest move by Easterbrook to modernize the 60-year-old chain and reverse four straight years of traffic declines.

It's also a direct shot at Wendy's Co, Whataburger and In-N-Out. Those fresh-burger chains are among the fast-food rivals that McDonald's says have siphoned 500 million U.S. transactions from its stores since 2012.

Easterbrook's introduction of all-day breakfast in October 2015 was a big hit and has helped lift sales. The company's stock price is up more than 25 percent so far this year.

Analysts expect the fresh-beef push, along with moves to ditch artificial ingredients in popular items such as chicken nuggets, to bolster sales by addressing consumer demand for simpler, "cleaner" and fresher ingredients.

Three Dallas-area McDonald's managers who spoke with Reuters estimated the switch has improved their Quarter Pounder sales from 20 percent to 50 percent, albeit aided by advertising and coupons.

"We've been stealing customers from a Whataburger down the street," said Edgar Meza, a manager at a McDonald's restaurant in an upscale neighborhood in north Dallas. Officials at Texas-based Whataburger, a regional chain, declined to comment.

Some burger lovers are taking notice too.

"They're a little juicier," said Bob Riley, who was polishing off a Quarter Pounder at an outlet near Dallas' Deep Ellum neighborhood, his third McDonald's meal of the week.

"I think Wendy's woke them up," he said.

Joe Jasper, a former McDonald's executive who owns 20 restaurants in the Dallas-Fort Worth area, has been deeply involved in the effort. He described the new Quarter Pounder as "the best burger in our industry, but more importantly, (one delivered) at the speed of McDonald's."

Trouble is, the "speed of McDonald's" isn't as fast as that of many of its competitors.

The average service time at a McDonald's drive-through last year was 208.2 seconds, according to a study published by QSR magazine, an industry publication, using data from SeeLevel HX, an Atlanta-based business intelligence firm. That's well behind industry leader Wendy's at 169.1 seconds, according to the survey. Burger King, Dunkin' Donuts and KFC all beat McDonald's too.

McDonald's narrowed the gap with Wendy's by one-third from 2012 to 2016 by adding more drive-through lanes at some stores and by scrapping products such as "snack wraps," tortilla-wrapped sandwiches that proved time-consuming to prepare. Still, its average drive-through service time last year was almost 20 seconds slower than it was in 2012, according to SeeLevel HX data.

Whether that's worth it for McDonald's customers remains to be seen as the experiment goes nationwide.

Juan Rodriguez waited on his lunch break for a fresh-beef Quarter Pounder at the drive-through of another Dallas McDonald's outlet about nine miles from Barcenas' store. At the three-minute mark, the 20-year-old was getting restless.

"If it's better, I don't mind waiting," Rodriguez said. "But if it tastes the same, then no."

 

[ahoyhoy]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

 

[Laevateinn]

Of course not. They are already disgusting people with horrible taste who value convenience over literally everything else.

 

[SeanC]

Damn, she waited four whole minutes? She really wanted to shove some burgers in her mouth stat, huh?

 

[Tripon]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

Five guys are terrible at least here in socal.

 

[Sheroking]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

Well this is kind of McDonald's problem. They're losing a lot of business to midrange diners like Five Guys and in order to get the business back, may need to up their food quality.

 

[Zombie James]

The burger, made with fresh beef and billed as hotter and juicer than the original made from a frozen patty, is part of the company's effort to serve tastier food.

But after about four minutes, it was Moore who was steamed. Like other customers who'd ordered the new Quarter Pounder at the restaurant's drive-through, she was asked to pull into a parking space and wait.

"If it's going to be that long every time, I won't order it. I'd go elsewhere," said Moore, who hits the drive-through every morning for a Coke and dines frequently at the chain.

First off, this is hilarious. Four whole minutes, oh no. Secondly, hasn't Wendy's been doing this forever? They're pretty successful.

 

[M-PG71C]

What Mickey D's needs to learn is the same lesson BK learned a while back: Nobody goes to McDonalds for premium anything.

They need to be focusing on keeping their menu prices lean, quick turn around time on orders, and food quality needs to be focused on "freshness". This will fall flat on its face.

 

[Dynomutt]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

It will be better but you'll spend the same amount that could probably feed five guys at McDonalds.

 

[Thatonemoor]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

They aren't everywhere the closest one to me is 45 minutes away. While McDonald's is down the road.

 

[Apt101]

I don't see why McDonald's is still slower than Wendy's, even though much of what one orders at Wendy's made to order. Must be their system / process.

Anyway, I tried one of the fresh quater pounders and it was indeed a lot better (and I already liked McD's quarter pounders), but they did make me wait in a parking spot for several minutes.

 

[MidgarBlowedUp]

I don't wait at Wendy's.

 

[TS-08]

First off, this is hilarious. Four whole minutes, oh no. Secondly, hasn't Wendy's been doing this forever? They're pretty successful.

Anecdotally, Wendy's has been the drive though I always felt was among the fastest, and this article confirms that it is, so it's funny to me that it's somehow a problem for McDonald's.

 

[The Greek Freak]

Only been to McDs twice in the last year.

Both times they asked me to park and wait for the food then threw hissy fits when I asked for my money back instead.

The fuck is the point of fast food if its not fast? If I had more than 5 minute or 5$ I wouldn't be there.

 

[WhiteRabbitEXE]

"If it's better, I don't mind waiting," Rodriguez said. "But if it tastes the same, then no."

I mean, yeah.

But every time McDonald's cooks up something new in the patty department it tastes the exact damn same, so I doubt it.

 

[Sephzilla]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

Five Guys is awful.

Culvers is the way to go

 

[BigJonsson]

She goes there every morning for a coke? Why not buy in bulk at the store and bring one from the fridge every day instead?


Does she just get a coke or other stuff too? Article isn't clear

 

[zma1013]

She only had to wait 4 minutes? That's way better than my McDonalds. I'm more often than not waiting closer to 10 minutes at the drive thru.

 

[CitizenVectron]

"The beckoning maw of my food hole awaits, and this meat-flesh dallies so! The chasm of my consumption shall wait no longer! I must gorge myself or perish!"

- McDonald's customer upset by changes to food preparation

 

[Hellsing321]

First off, this is hilarious. Four whole minutes, oh no. Secondly, hasn't Wendy's been doing this forever? They're pretty successful.

Yeah this what I don't get. Wendy's has has fresh beef forever and according to the article is kicking the crap out of McDonald's in the speed department.

 

[hydrophilic attack]

This is why we can't have good things

Five Guys is awful.

You shut your mouth

 

[Rudimental]

I don't wait at Wendy's.

Is that meant to be freckles or blood splatter?

 

[Abstrusity]

I worked at McDonald's, a quarter pound patty takes 80 seconds to cook fresh, and another 20 at best to prep. Otherwise you get the gritty nasty tray burgers.

 

[jwk94]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

I hate that place. They're expensive and really greasy. McDonald's at least has great fries.

 

[BlueTsunami]

I order online at Five Guys. It would be cool if they had a drive through pickup. Cook the fries and the burger together and it would be ready to go via drive through.

 

[Beer Monkey]

Yeah this what I don't get. Wendy's has has fresh beef forever and according to the article is kicking the crap out of McDonald's in the speed department.

There's a reason Wendy's has chili. Cook too many burgers too fast? They go in the chili.

 

[jwk94]

Anecdotally, Wendy's has been the drive though I always felt was among the fastest, and this article confirms that it is, so it's funny to me that it's somehow a problem for McDonald's.

Anecdotally, McDonald's has far more customers at once than Wendy's does.

I order online at Five Guys. It would be cool if they had a drive through pickup. Cook the fries and the burger together and it would be ready to go via drive through.

Online ordering is actually available, but for some reason they haven't enabled it in the McDonald's app yet. If you go to the app, while it's loading, the option pops up and the disappears real quick.

 

[Bread]

Of course not. They are already disgusting people with horrible taste who value convenience over literally everything else.

tell us how you really feel

 

[Malyse]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

Five guys are terrible at least here in socal.

Terrible in Virginia too.

 

[KingV]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

5 guys is about 2x as expensive as McDs though. That's what I like about McDs, I can feed my family for <$20.

The flip side of that is what I dislike about most of the fast casual places. They have all the ambience of a McDonalds but are 2x more expensive. It costs me $30 to feed three people at Panera and I still gotta get my own drink? Nah, fam. They can have that.

 

[Chmpocalypse]

There's a reason Wendy's has chili. Cook too many burgers too fast? They go in the chili.

This is actually true. Source: my first job was at a Wendy's.

 

[Burt]

tell us how you really feel

quick burgers more important than children's lives confirmed

 

[KingV]

There's a reason Wendy's has chili. Cook too many burgers too fast? They go in the chili.

Yeah. The chili is gross. I used to work there and have bad memories of making it.

Edit: this whole thing, by the way is a great example of why fast food is not being replaced by robots anytime soon.

It would be infinitely more complicated to roll this out if you had fully automated restaurants, and there's a lot more to lose if it is not successful

 

[Lightning_Roller]

I don't wait at Wendy's.

Oh hey, it's sassy Wendy.



But yeah, four minutes for one burger.....hellll no.

 

[hydrophilic attack]

5 guys is about 2x as expensive as McDs though. That's what I like about McDs, I can feed my family for <$20.

The flip side of that is what I dislike about most of the fast casual places. They have all the ambience of a McDonalds but are 2x more expensive. It costs me $30 to feed three people at Panera and I still gotta get my own drink? Nah, fam. They can have that.

You feed that horrible stuff to your kids?

 

[vacantseas]

GAF really has a fascination with McDonalds eh?

 

[Vandiger]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

Pay more for about the same burger, nah.

 

[Pai Pai Master]

Just go to a Five Guys if you're going to have to wait more than 5 minutes.

A meal at five guys basically costs 3-4 times that of McDonald's. Not saying it's bad but if you're gonna choose McDonald's I'm assuming it's because of the cost and time commitment.

 

[KrellRell]

Of course not. They are already disgusting people with horrible taste who value convenience over literally everything else.

Tell us how you really feel.

 

[KingV]

You feed that horrible stuff to your kids?

They were formula fed too. I'm a horrible monster, and you can take your judgmental uppity bullshit right on to somebody else.

 

[KrellRell]

tell us how you really feel

Whoa, you beat me to it! I like you

 

[Technosteve]

Or go to wendy's

 

[GAMEPROFF]

Of course not. They are already disgusting people with horrible taste who value convenience over literally everything else.

Thank you, I like you also.

 

[Zoe]

This is why I was always skeptical when they talk about upping their quality. Their product was fine as it was.

I don't see why McDonald's is still slower than Wendy's, even though much of what one orders at Wendy's made to order. Must be their system / process.

There is no way Wendy's is made to order. Assembled to order, but definitely not made.

 

[teh_pwn]

The bigger issue is the quality of the beef. It's the scraps of the cow, it's not ground chuck from a grocery or butcher. Also from what I remember their patties lacking seasoning.

 

[hydrophilic attack]

They were formula fed too. I'm a horrible monster, and you can take your judgmental uppity bullshit right on to somebody else.

racist slurs

nice

 

[Hari Seldon]

Wendy's is so fucking expensive at this point that it is worthless to go there. That place is shit tier since 'ol Dave died.

 

[aett]

When I was in high school (late '90s) my town's only McD's was shut down for a year for a complete overhaul. When it reopened, there were lines going out the door and around the building for the first couple weeks.

So yeah, some people'll wait.

 

[shnurgleton]

what's so wrong with meat having been frozen anyway

also it's mcdonalds not some gastronomic masterpiece, who cares if it was frozen

 

[JeffZero]

Wendy's is so fucking expensive at this point that it is worthless to go there. That place is shit tier since 'ol Dave died.

Their 4 for $4 is fantastic.